ABSTRACT
Income distribution in mainstream textbooks is, if discussed at all, explained on the basis of the marginal productivity theory of distribution. This approach is used for functional income distribution as well as for wage dispersion. Income distribution in this approach is based on “quasi-objective” factors, marginal productivity. Changing functional income distribution is explained with specific developments of the productivity of capital and labour, and changing wage dispersion is explained also by specific types of technological development and globalisation. Problems of increasing income and wealth inequality are not discussed. This chapter explains approaches to income distribution in other paradigms, first of all in the original Keynesian and post-Keynesian interpretation.
